Select Sands Corp. (TSX VENTURE:SNS)(OTC:CLICF) is pleased to announce that it has exercised the option to acquire and has now completed the acquisition of a 100% undivided right, title, and interest in its approximately 520-acre frac sand property located in northeast Arkansas, USA.
The option agreement was entered into with an arm's length landowner in October 2014 (See press release dated October 9, 2014) providing the Company with the option to acquire the Property for US$936,000 at any time on or before the 18 month anniversary of the agreement. Pursuant to the terms of the agreement an initial payment of US$200,000 was paid by the Company to the vendors with a final payment of US$736,000, to be paid on closing.
The Company extended the term of the option by paying US$4,000 per month to the vendors, US$2,000 of which was credited against the US$736,000 purchase price. To date US$32,000 of extension payments have been paid with US$16,000 being credited against the US$736,000 purchase price bringing the aggregate amount paid to the vendors (inclusive of extension payments) to US$952,000.
An aggregate finder's fee of US$65,520 (equal to 7% of the transaction value) was paid in respect of this transaction to two separate finders. One-half of this finder's fee was satisfied through the issuance of 46,191 common shares in the capital of the Company. The number of common shares was based on the 20-day volume weighted average price of the Company's common shares on the TSX Venture Exchange (for the 20 days preceding the closing date) with Canadian dollars converted to U.S. dollars at the noon rate of Exchange for Cdn/U.S. dollars on the closing date as posted on the Bank of Canada's website.